Maryland Home Improvement Contractor
Licensing and Regulations
Maryland Home Improvement Commission (MHIC) -✓✓Regulates home
improvement contractors in Maryland
MHIC License Requirement -✓✓Must be licensed before advertising or working
License Validity Period -✓✓2 years
License Renewal -✓✓Fee and application before expiration
Unlicensed Contracting -✓✓Punishable by fines and suspension
Advertising Without License -✓✓Illegal
Written Contract Threshold -✓✓Jobs over $200
Required Contract Format -✓✓Must be in writing and signed
Contract Must Include -✓✓License number and contractor info
Contract Scope -✓✓Description of work
Contract Price -✓✓Total project cost
Start and Finish Dates -✓✓Must be stated
Payment Schedule -✓✓Included in contract
Cancellation Notice -✓✓Must be included
Right of Rescission -✓✓3 business days to cancel
Door-to-Door Sales Act -✓✓Protects consumers
, Deposit Allowed -✓✓After contract signed
Deposit Limit -✓✓No more than 1/3 (typical rule of thumb)
Progress Payments -✓✓Allowed if stated
Final Payment -✓✓Due after completion
Time and Materials Contract -✓✓Must be written
Oral Contracts -✓✓Not allowed over $200
Change Order Definition -✓✓Written contract modification
Change Order Requirement -✓✓Must be signed
Unauthorized Changes -✓✓Prohibited
Warranty Disclosure -✓✓Must be in contract
Material Specifications -✓✓Must be listed
Subcontractor Disclosure -✓✓Recommended in contract
Lien Rights -✓✓Must follow state law
Mechanic's Lien -✓✓Possible for unpaid work
False Advertising -✓✓Prohibited
Misrepresentation -✓✓Illegal
Complaint Filing -✓✓Through MHIC
Disciplinary Actions -✓✓Fines, suspension, revocation
Guaranty Fund -✓✓Pays homeowners for losses
Licensing and Regulations
Maryland Home Improvement Commission (MHIC) -✓✓Regulates home
improvement contractors in Maryland
MHIC License Requirement -✓✓Must be licensed before advertising or working
License Validity Period -✓✓2 years
License Renewal -✓✓Fee and application before expiration
Unlicensed Contracting -✓✓Punishable by fines and suspension
Advertising Without License -✓✓Illegal
Written Contract Threshold -✓✓Jobs over $200
Required Contract Format -✓✓Must be in writing and signed
Contract Must Include -✓✓License number and contractor info
Contract Scope -✓✓Description of work
Contract Price -✓✓Total project cost
Start and Finish Dates -✓✓Must be stated
Payment Schedule -✓✓Included in contract
Cancellation Notice -✓✓Must be included
Right of Rescission -✓✓3 business days to cancel
Door-to-Door Sales Act -✓✓Protects consumers
, Deposit Allowed -✓✓After contract signed
Deposit Limit -✓✓No more than 1/3 (typical rule of thumb)
Progress Payments -✓✓Allowed if stated
Final Payment -✓✓Due after completion
Time and Materials Contract -✓✓Must be written
Oral Contracts -✓✓Not allowed over $200
Change Order Definition -✓✓Written contract modification
Change Order Requirement -✓✓Must be signed
Unauthorized Changes -✓✓Prohibited
Warranty Disclosure -✓✓Must be in contract
Material Specifications -✓✓Must be listed
Subcontractor Disclosure -✓✓Recommended in contract
Lien Rights -✓✓Must follow state law
Mechanic's Lien -✓✓Possible for unpaid work
False Advertising -✓✓Prohibited
Misrepresentation -✓✓Illegal
Complaint Filing -✓✓Through MHIC
Disciplinary Actions -✓✓Fines, suspension, revocation
Guaranty Fund -✓✓Pays homeowners for losses
